B2 Impact ASA · OSL:B2I
B2 Impact ASA — B2Holding — Q4 2021 Earnings Presentation
33 slides from B2 Impact ASA's earnings presentation, February 2022
Slide 1: Photo: Kyler Trautner / Unsplash
Photo: Kyler Trautner / Unsplash
Slide 2: Highlights Q4 2021
Highlights Q4 2021 Operations – Unsecured collections at 102 % of the forecast – Secured recoveries 122% of the forecast Effectiveness & efficiency – Lower cost levels sustained – Automation and optimization of processes delivering tangible results in unsecured collection Investments – Significant i
Slide 3: Key figures Q4 2021 (NOKm)
Key figures Q4 2021 (NOKm) 3 B2Holding ASA Q4 and Full Year 2021 results presentation Comparable numbers for Q4 2020 below. 1) Includes the Group’s share of gross collection for portfolios purchased and held in SPVs and joint ventures. 2) Prior period numbers are updated in accordance with adjusted
Slide 4: Group Main Achievements 2021
Group Main Achievements 2021 Organization & Operational Effectiveness & Capital funding Investments ESG improvements efficiency – Maintained Covid-19 – Unsecured collections: – Sustained lower cost base – Stable cash earnings, – Solid investment capacity measures: remote or Continued positive trend
Slide 5: Strong indications of a more active NPL market in 2022
Strong indications of a more active NPL market in 2022 – NPL market recovery continued in Q4 with significant increase in volume of deals marketed and transacted versus same period in 2020. – According to EBA1), European banks expect renewed growth in consumer credit over the next 12 months, but a d
Slide 6: Senior financing structure agreed with PIMCO
Senior financing structure agreed with PIMCO De-risking the balance sheet and monetizing secured back book at book value today Increased investment EUR 200m senior financing of back book in secured markets, non-recourse to B2Holding capacity in secured and unsecured New sources of funding to drive s
Slide 7: Establishing a cross-border master servicer with local expertise
Establishing a cross-border master servicer with local expertise – Segregate Servicing from Current New structure Investment activity in countries with secured assets – All assets in back book part of new Asset companies – Increased investment capacity across all markets Country Core unsecured & Mas
Slide 8: Additional investment capacity for secured and unsecured markets
Additional investment capacity for secured and unsecured markets – Senior financing of approx. EUR 200m agreed with PIMCO BV1 NOK 13.1bn – Reinvestment of cash flows BV NOK 8.3bn BV NOK 4.8bn through revolving facility up to EUR 130m next two years Core unsecured & Core secured existing JVs ~EUR 200
Slide 9: Financial performance
Financial performance B HOLDING”
Slide 10: Fourth quarter 2021 summary
Fourth quarter 2021 summary – Collections performance above forecast in Q4 • Unsecured collections at 102.0% • Secured recoveries at 122.2% – REOs sold at a 43% premium in Q4 and 38% during the full year – Sustained cost control and improved efficiency driving Adj. EBIT growth • NRIs impacting EBIT
Slide 11: Collection Performance
Collection Performance Unsecured collection performance REOs sold Secured recoveries – Unsecured collections continued to perform ahead of forecast – Secured collections above latest forecast – REOs sold with a premium to book value 11 B2Holding ASA Q4 and Full Year 2021 results presentation All num
Slide 12: Strong secured & REO monetization resulting in solid cash earnings
Strong secured & REO monetization resulting in solid cash earnings Investments Cash flow Q4 2021 Additional investment capacity Cash earnings NOKm NOKm Deleveraging Lev.ratio Lev.ratio (adj) 12 B2Holding ASA Q4 and Full Year 2021 results presentation
Slide 13: Sustained lower cost base while maintaining high collection activity
Sustained lower cost base while maintaining high collection activity 1) 2) – Sustained lower cost base despite high collection activity demonstrating increased scalability across the group – OPEX in the quarter down 13% compared to Q4 2019 adjusted for FX and NRIs – We expect to benefit from a more
Slide 14: Portfolio investments and Estimated Remaining Collections (ERC)
Portfolio investments and Estimated Remaining Collections (ERC) ERC incl. REO book value Portfolio investments in Q4 NOKm Geographical distribution Asset class distribution NOK NOK 552m 552m Total ERC as of Q4 Geographical distribution Asset class distribution NOK NOK 19.9bn 19.9bn 14 B2Holding ASA
Slide 15: Q4 revisions reflects full prudent re-underwriting of secured assets
Q4 revisions reflects full prudent re-underwriting of secured assets Revision & Revaluations Purchased loan portfolios -166 – Total re-underwriting of secured curves • Cash based curves, repossessions may come earlier • Change in NPV related to timing effect • Prudent approach to values and timing t
Slide 16: Secured revisions in Q4 and 2022 collection guidance
Secured revisions in Q4 and 2022 collection guidance 16 B2Holding ASA Q4 and Full Year 2021 results presentation All numbers in NOK million
Slide 17: Summary
Summary B HOLDING”
Slide 18: Key takeaways
Key takeaways 2021 closed on a Dividend of NOK Signed financing Significant Prepared for positive trend 0.42 for 2021 agreement with increase in higher market PIMCO to drive investments in Q4 activity scalability on secured platforms 18 B2Holding ASA Q4 and Full Year 2021 results presentation
Slide 19: Q&A
Q&A B HOLDING”
Slide 20: Quarterly financial performance
Quarterly financial performance Net revenues Cash EBITDA Adjusted EBIT NOKm NOKm NOKm 20 B2Holding ASA Q4 and Full Year 2021 results presentation
Slide 21: Fourth quarter 2021 summary
Fourth quarter 2021 summary 21 B2Holding ASA Q4 and Full Year 2021 results presentation 1) Includes the Group’s share of gross collection for portfolios purchased and held in SPVs and joint ventures 2) Including the Group’s share of portfolios purchased in SPVs and joint ventures
Slide 22: Deleveraging and lower cost of funding
Deleveraging and lower cost of funding Decreased leverage following strong cash flow Interest expenses reduced 1) NOKm – Net interest-bearing debt reduced by NOK 2.0bn year-on-year • NOK 1.3bn adjusted for FX effects – Interest expenses reduced by NOK 42m year-on-year • Driven by debt repayment and
Slide 23: ERC development
ERC development Development in total gross ERC1) Forward 120m ERC profile by year1) NOKm NOKm 23 B2Holding ASA Q4 and Full Year 2021 results presentation 1)Including the Company’s share in JVs
Slide 24: Portfolio diversification
Portfolio diversification 24 B2Holding ASA Q4 and Full Year 2021 results presentation ERC including the Group’s share of portfolios acquired and held in SPVs and joint ventures. Disclaimer: B2Holding ASA emphasizes that every assessment of future conditions necessarily involves an element of uncerta
Slide 25: Northern Europe (NE)
Norway, Sweden, Denmark, Finland, Estonia, Latvia and Lithuania Northern Europe (NE) Highlights & KPIs – Portfolio purchase volume of NOK 90m in the quarter – Gross collection of NOK 379m Portfolio purchases Cost to Collect 25 B2Holding ASA Q4 and Full Year 2021 results presentation
Slide 26: Poland
Poland Poland Highlights & KPIs – Portfolio purchases of NOK 319m in the quarter – Gross collection of NOK 251m Portfolio purchases Cost to Collect 26 B2Holding ASA Q4 and Full Year 2021 results presentation
Slide 27: Central Europe (CE)
Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Hungary and Czech Republic Central Europe (CE) Highlights & KPIs – Portfolio purchases of NOK 47m in the quarter – Gross collection of NOK 222m Portfolio purchases Cost to Collect 27 B2Holding ASA Q4 and Full Year 2021 results presentati
Slide 28: Western Europe (WE)
Spain, Italy and France Western Europe (WE) Highlights & KPIs – Portfolio purchases of NOK 12m in the quarter – Gross collection of NOK 158m Portfolio purchases Cost to Collect 28 B2Holding ASA Q4 and Full Year 2021 results presentation
Slide 29: South Eastern Europe (SEE)
Romania, Bulgaria, Greece and Cyprus South Eastern Europe (SEE) Highlights & KPIs – Portfolio purchases of NOK 85 in the quarter – Gross collection of NOK 185m Portfolio purchases Cost to Collect 29 B2Holding ASA Q4 and Full Year 2021 results presentation
Slide 30: 20 largest shareholders
20 largest shareholders 30 B2Holding ASA Q4 and Full Year 2021 results presentation Updated per 7 February 2022 1) Total shareholdings of Rasmussengruppen AS includes shareholdings of its fully owned subsidiaries Portia AS, Cressida AS and Viola AS
Slide 31: Definitions
Definitions – Actualisation: The difference between actual and forecasted collections for purchased loan portfolios for the – Cost other revenues: Cost other revenues is all external and internal operating costs related to the Group’s other reporting period. business areas. – Adjusted EBIT (Adj. EBI
Slide 32: Definitions (cont'd)
Definitions (cont’d) – Interest Coverage: The ratio of Cash EBITDA divided by net interest expenses. – Net revenues: Net revenues are the Total revenues reported less the Cost of collateral assets sold, including impairment. – Interest income from purchased portfolios: Interest income from purchased
Slide 33: b2holding.no
b2holding.no IR contact B2Holding ASA Rasmus Hansson Stortingsgaten 22 Head of Commercial Strategy P.O.Box 1726 Vika N-0121 Oslo and Investor Relations www.b2holding.no +47 952 55 842 +47 22 83 39 50 rh@b2holding.no post@b2holding.no